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Tag: KT&G

  • BlackRock Increases Stake in KT&G

    BlackRock Increases Stake in KT&G

    BlackRock announced that it acquired an additional 467,350 shares of KT&G over the past four months, increasing its stake in the Korean company from 5.01% to 6.15%. The move follows a similar investment by Capital Group, which recently raised its holding to 7.21%, helping push foreign ownership of KT&G above 51%. The increased foreign investment reflects confidence in the company’s earnings outlook, supported by strong international tobacco sales and expectations for enhanced shareholder returns.

    KT&G’s overseas cigarette business continues to drive growth, with first-quarter revenue rising 24.6% year-on-year and operating profit increasing 56.1%, aided in part by strategic price increases. The company has also intensified engagement with international investors through roadshows and other investor-relations activities and plans to introduce a new shareholder return policy in the second half of 2026, with stronger dividend payouts expected to be a key feature. KT&G said the rising stakes held by major global asset managers demonstrate confidence in its long-term growth strategy and commitment to delivering industry-leading returns to shareholders.

  • KT&G Continues Growth with International Investors

    KT&G Continues Growth with International Investors

    KT&G continues to emerge as a favorite among foreign investors in 2026, according to The Korea Herald, with overseas ownership surpassing 50% for the first time in seven years as investors bet on the South Korean tobacco maker’s earnings growth, international expansion and shareholder returns. Shares recently reached a record 190,000 won ($123.50), while major investors, including First Eagle, GIC, BlackRock, and Capital Group, have increased their holdings.

    The company’s appeal is being driven by both capital returns and strong operating performance. KT&G has retired more than 33 million shares since 2023 and is expected to unveil a new shareholder return policy later this year, fueling expectations for higher dividends. Last year, it paid an annual dividend of 6,000 won ($3.90) per share.

    KT&G also posted strong first-quarter results, with revenue rising 14.3% to 1.7 trillion won ($1.1 billion) and operating profit up 27.6% to 364.5 billion won ($237 million). Overseas cigarette revenue increased 24.6%, while overseas operating profit jumped 56.1%, reflecting growing sales across key international markets and continued momentum in next-generation products.

  • Foreign Investors Increase Stakes as KT&G Posts Record Sales

    Foreign Investors Increase Stakes as KT&G Posts Record Sales

    KT&G is attracting renewed global investor interest after reporting record first-quarter overseas tobacco sales and continued strength in shareholder returns, according to The Korea Times. Earlier this month, Capital Group acquired a 5.61% stake in the company through its subsidiary, following a similar move in January by BlackRock, which built a position of more than 5%. Foreign investors have posted net purchases of KT&G shares for 22 consecutive trading days since April 9, lifting foreign ownership by nearly one percentage point, as investors increasingly view the stock as a value play supported by solid fundamentals and dividend policy rather than Korea’s semiconductor-heavy market trends.

    KT&G’s share price climbed from the ₩140,000 ($92.40) range in January to around ₩180,000 ($118.80), supported by first-quarter sales of ₩1.7 trillion ($1.1 billion) and operating profit of ₩365 billion ($241 million), up 14.3% and 27.6% year-on-year, respectively. Overseas tobacco sales reached a record ₩560 billion ($370 million), with operating profit from global operations rising 56.1%. Having already met its ₩3.7 trillion ($2.4 billion) shareholder return target for 2024–2027, KT&G plans to announce a new return policy later this year and has pledged to cancel all treasury shares following revisions to Korea’s Commercial Act, moves that analysts say are reinforcing its appeal among long-term institutional investors.

  • Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    U.S.-based Capital Group announced that it has acquired a 5.61% stake in South Korea’s KT&G, joining a growing group of major foreign investors in the tobacco company as its share price reaches record levels. The disclosure, required under Korean regulations for holdings above 5%, positions Capital Group alongside other significant shareholders, including BlackRock, First Eagle Investments, and Singapore’s GIC.

    The investment comes amid sustained foreign buying momentum, with overseas investors purchasing an estimated 800,000 shares worth about KRW 140 billion ($96.6 million) over 19 consecutive trading sessions through May 7. The influx of capital has helped push KT&G’s stock above KRW 180,000 ($122.40) for the first time, reflecting increased investor interest in the company’s performance and outlook.

  • KT&G Reports 27% Increase in Q1 2026

    KT&G Reports 27% Increase in Q1 2026

    KT&G reported a 27.6% year-over-year increase in first-quarter operating profit, supported by growth across both traditional cigarette and next-generation product (NGP) segments. Consolidated revenue reached KRW 1.7 trillion ($1.16 billion), up 14.3%, while operating profit rose to KRW 364.5 billion ($248 million). The company’s global combustible cigarette business saw strong performance, with shipment volumes increasing 15% and operating profit rising 56.1%, driven by higher sales and pricing improvements.

    The NGP segment also recorded significant gains, with revenue increasing 51.6% to KRW 241 billion ($164 million) and domestic market share reaching 47.4%. KT&G said it plans to expand its NGP business internationally through independent operations in key markets across Asia-Pacific and Eurasia. The company also continued shareholder returns, canceling treasury shares worth KRW 1.8 trillion ($1.24 billion), equivalent to 9.5% of total shares, and indicated that a new dividend policy will be announced later in 2026.

  • KT&G to Cancel $1.3B Treasury Shares

    KT&G to Cancel $1.3B Treasury Shares

    KT&G announced it will cancel all 10.9 million treasury shares it holds, valued at approximately 1.85 trillion won ($1.3 billion), with the burn scheduled for April 23. The decision, approved by the board, follows recent changes to Korea’s commercial law and is aimed at enhancing shareholder value.

    The move aligns with the company’s broader capital return strategy, which also includes raising its annual dividend to 6,000 won ($4.08) per share.

  • KT&G Preparing Pilot Line for Oral Nicotine Product

    KT&G Preparing Pilot Line for Oral Nicotine Product

    KT&G is developing a smokeless nicotine product designed for oral absorption and is preparing a pilot production line for research and development in South Korea, according to local media outlet The Elec. The pilot equipment will be supplied by PNT, a manufacturer known for roll-to-roll battery and display production systems. KT&G said the project is in an early stage and that plans for domestic or international commercialization of nicotine pouches or related products have not been finalized.

    The move aligns with growing global competition in nicotine pouches, led by brands such as Zyn and VELO. KT&G last year participated with Altria in the acquisition of Scandinavian pouch companies ASF AB and ASF AS. In South Korea, however, nicotine pouches currently lack formal sales authorization under the Tobacco Business Act, and products are primarily obtained through overseas purchases or unofficial channels, meaning any domestic launch would be dependent on regulatory changes.

  • KT&G Outlines Growth and Innovation Plans

    KT&G Outlines Growth and Innovation Plans

    KT&G CEO Bang Kyung-man said the company will maintain a stable growth trajectory despite headwinds from protectionist trade policies and high exchange rates. Speaking at the annual shareholders’ meeting in Daejeon, Bang emphasized strengthening profitability and efficiency on the foundation of existing growth.

    KT&G plans to enhance the profit structure of its overseas cigarette business through country-specific pricing strategies and full-scale operation of its “local complete production system.” The company also aims to boost competitiveness in the NGP (next-generation products) segment, including cigarette-type e-cigarettes, by accelerating R&D-driven innovation and leveraging global partnerships.

    Bang highlighted a commitment to shareholder returns, including dividend expansion and share buybacks, and reaffirmed KT&G’s role as a leading company in South Korea’s valuation industry. At the meeting, shareholders approved the 39th financial statements, amendments to the articles of incorporation, changes to director compensation, appointments of outside directors and audit committee members, and the treasury share disposal plan.

  • KT&G’s Overseas Sales Up 29%

    KT&G’s Overseas Sales Up 29%

    KT&G announced today (March 24) that its super-slim cigarette brand Esse saw its overseas cigarette revenue jump 29.4% year-on-year to 1.9 trillion won ($1.3 billion) last year, becoming the “first Korean cigarette brand to surpass 1 trillion won in overseas sales.” KT&G also said it was the first time its global cigarette sales exceeded its domestic revenue.

    According to the company, Esse, now sold in more than 90 countries, has built its growth on differentiated slim designs and localized market strategies. The brand has recorded cumulative global sales of over 1 trillion cigarettes and currently accounts for “roughly one-third of the global super-slim segment, ranking as the leading brand in that category.”

  • KT&G Streamlines Heated Tobacco Stick Portfolio

    KT&G Streamlines Heated Tobacco Stick Portfolio

    KT&G has announced the integration of its cigarette-type e-cigarette “Lil Able” stick lineup under a unified “AIIM” brand, in a move aimed at improving product clarity and consumer accessibility. The consolidation brings together existing variants — including Real, Granula, and Vaporstick — into a more streamlined structure, enabling users to more easily navigate and select products within the portfolio.

    Under the reorganization, a total of 11 products will be incorporated into the AIIM range, complemented by four “RAIIM” variants focused on delivering a more natural tobacco flavor, bringing the total Lil Able-compatible lineup to 15 products. KT&G said the transition will be rolled out gradually as existing inventory is depleted, adding that the brand integration reflects its strategy to align product offerings more closely with evolving consumer preferences and simplify the user experience.